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28 Feb 2014
USD/CAD breached 1.1100 on data
FXStreet (Edinburgh) - The CAD is strongly appreciating against the USD on Friday, pushing the USD/CAD to test the support at 1.1100 in the wake of US, Canada data.
USD/CAD in 2-day lows
The pair is now breaching the 1.1100 key support after the US GDP expanded below estimates at an annual pace of 2.4% vs. 2.5% forecasted. Adding to the downside, the Canadian economic activity grew 2.9%, bettering forecasts for a 2.5% gain and up from 2.7% previous. According to James Knightley, Analyst at ING Bank NV, “it looks as though 1Q14 GDP growth is going to be soft too given the damaging impact from bad weather. However, the Federal Reserve appears prepared for this and expects it to be merely a temporary effect. As such we look for the Fed to continue with the tapering of their QE programme at the March FOMC meeting, although weather impacted soft ISM and payrolls figures next week may lead to some market caution on this”.
USD/CAD key levels
At the moment the pair is losing 0.42% at 1.1089 with the next support at 1.1074 (low Feb.26) followed by 1.1071 (10-D MA) and finally 1.1055 (low Feb.25). On the upside, a surpass of 1.1145 (high Feb.26) would aim for 1.1160 (high Feb.27) and then 1.1225 (2014 high Jan.31).
USD/CAD in 2-day lows
The pair is now breaching the 1.1100 key support after the US GDP expanded below estimates at an annual pace of 2.4% vs. 2.5% forecasted. Adding to the downside, the Canadian economic activity grew 2.9%, bettering forecasts for a 2.5% gain and up from 2.7% previous. According to James Knightley, Analyst at ING Bank NV, “it looks as though 1Q14 GDP growth is going to be soft too given the damaging impact from bad weather. However, the Federal Reserve appears prepared for this and expects it to be merely a temporary effect. As such we look for the Fed to continue with the tapering of their QE programme at the March FOMC meeting, although weather impacted soft ISM and payrolls figures next week may lead to some market caution on this”.
USD/CAD key levels
At the moment the pair is losing 0.42% at 1.1089 with the next support at 1.1074 (low Feb.26) followed by 1.1071 (10-D MA) and finally 1.1055 (low Feb.25). On the upside, a surpass of 1.1145 (high Feb.26) would aim for 1.1160 (high Feb.27) and then 1.1225 (2014 high Jan.31).